This guide is for e-commerce companies that sell online via web stores or at marketplaces.
VAT Standard rate
The standard VAT rate in Denmark in 2023 is 25%.
VAT Reduced rate
A special reduced rate of 0% applies to certain goods and services that are generally of increased social importance (for example, newspapers; hospital treatment; insurance and reinsurance services; most financial transactions, including cash deposits and loans).
Since July 1, 2021, new rules have been introduced throughout the EU, according to which the threshold is €10,000.
VAT due or paid on the following transactions can be deducted:
- Domestic supplies of goods or services and transactions treated as such;
- Intra-EU acquisitions of goods and transactions treated as such;
- Importation of goods.
To register, you must send a package of the following documents by e-mail:
- A form filled out in accordance with the rules;
- A copy of your passport/ID;
- A copy of the company’s registration certificate in your established.
After reviewing your application, the tax office may request additional documents.
Enterprises without a place of business or permanent residence in Denmark have to register through a VAT representative. Unlike a business, a representative must have a place of business or a registered office in Denmark. The representative is also jointly responsible for filing the VAT return and paying the value-added tax.
Enterprises from UK, Norway, Iceland and EU countries are exempt from the obligation to appoint a tax representative.
VAT returns filing date
The period for filing tax returns depends on your turnover and several other conditions.
|Quarterly||DKK 5-50 million (€670.000 – €6.700.000 )|
|Half a year||Less than DKK 5 million|
However, even if your turnover is less than DKK 5 million, the IRS may impose a quarterly filing regime if you fail to file your tax returns and pay taxes on time. Besides, you need to file a VAT return quarterly if your business is new and if you have requested quarterly settlement.
The deadlines are 1st day of the 3rd month after the end of the quarter or half-year in case of the VAT returns are submitted on a quarterly or half-yearly basis.
VAT payment date
It is better to pay taxes together with the filing of the tax return. The payment deadline coincides with the deadline for filing tax reports.
For various reasons, the obligation to keep documentation is set from 5 to 10 years.
Interest is accrued starting from the date of late payment until the payment is made. This also applies to fees.
The interest rate is 0.7% a month in the 2021 year.